A house is $100,000, a computer is $2,000, and a car is $20,000. In this context, money is principally functioning as a
A) unit of account.
B) store of value.
C) medium of exchange.
D) none of the above
A
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Which of the following is not an institutional constraint that limits the United States' production possibilities?
A. Blue laws that restrict bars and liquor stores from opening on Sunday B. Restrictions on child labor C. The fact that Americans dislike working at night or on the weekends D. Workers who are "in between" jobs
Explain the following statement: “Good decisions typically require marginal analysis, which weighs added costs against added benefits.”
What will be an ideal response?
What is a constant-cost industry? What does the long-run industry supply curve look like for a constant-cost industry?
What will be an ideal response?
Adam Smith's invisible hand principle stresses
a. that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity. b. the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society. c. the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society. d. the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.